The report of a sharp decline in ICE inventories has supported coffee prices on both futures exchanges, while investors are paying attention to the El Nino weather phenomenon, which will have a negative impact on coffee-producing countries around the belt. Pacific…
At the end of the trading session, the spot price of Robusta coffee on the ICE Europe – London floor extended its upward streak to the sixth session. The November delivery term increased by 16 USD, to 2,409 USD/ton and the January delivery term increased by 24 USD, to 2,320 USD/ton, very significant increases. Trading volume is quite above average.
Similarly, Arabica coffee prices on ICE US – New York exchange returned to an upward trend. December delivery futures increased by 2.90 cents, to 157.05 cents/lb and March 2024 futures increased by 2 cents, to 156.70 cents/lb, quite strong increases. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces increased by 300 – 400 VND, fluctuating in the range of 64,000 – 64,600 VND/kg.
Brazilians reduced the sale of exported coffee as the Reais exchange rate continued to strengthen, potentially falling below R$ 5.00 against the USD, causing a global supply shortage, while the International Coffee Organization (ICO) ) still maintains a deficit in the new crop year 2023/2024 of 7.26 million bags, even when global production is forecast to increase by 1.70 million bags this crop year.
According to international news sites, coffee futures prices yesterday increased steadily on both exchanges due to support from the report that ICE inventories continued to decline. Arabica – New York decreased another 2,750 bags, down to 432,022 bags. Robusta – London decreased by another 12,333 bags, down to 636,167 bags (equivalent to 38,170 tons), the lowest level since early September.
Concerned that the US Federal Reserve (Fed) will continue to raise interest rates, in the context of long-term US treasury bonds still rising, causing stocks to reverse and decline, DXY continues to weaken and therefore, Commodities benefit from speculative capital inflows.
At the 2023 World Coffee Gala dinner in Switzerland, international traders asked Vietnamese exporters to deliver large shipments of new crop coffee with a very significant price difference (Dif.). Of course, these are tentative suggestions, because the forecast of the El Nino weather phenomenon causing a lot of rain right during the harvest period is very worrying and this year’s new crop forecast is not easy to buy. .
English (giacaphe.com)
